• Gold price consolidates the solid rebound from seven-week lows.  
  • Risk-off mood-led fall in Treasury yields rescue gold buyers.
  • Gold’s hourly chart shows that the recovery could likely extend.

Update: Gold prices eases below daily highs above $1,750 after posting a one week high in the US session. The downward pressure builds up on the renewed buying interest in the greenback, which makes the precious metal expensive for  holders of the other currencies. The uptrend is supported by the mixed economic data, the US Gross Domestic Product (GDP) rose an annual 6.7% in Q2, moderately higher than market estimates of 6.6%. Earlier the comments from the Chicago Fed Reserve President Charles Evans calls for a patience outlook on the inflation and believes that low interest rates still will be needed to bring US inflation back durably to 2% pulls the greenback lower. Gold is traditionally seen as an inflation hedge. Furthermore, a majority of the US Senate on Thursday voted to keep the government fully operating as the new fiscal year begins.

Gold price is clinging onto the staggering recovery staged from seven-week lows on Thursday, having found support at $1750 amid a minor retreat. The market remains risk-averse amid a delay in the US infrastructure bill vote, looming China Evergrande risks and concerns over the global economic growth. Therefore, the US Treasuries are seeing a revival in the safe-haven flows, weighing heavily on the yields across the curve while the US dollar attempts look to resume the upside.

Despite the rebound in gold price, growing expectations of a sooner than expected Fed rate tapering, followed by a rate hike, are likely to keep the bulls on the edge. Meanwhile, the upward revision to the US final Q2 GDP estimate and hawkish Fedspeak continue to undermine gold’s recovery.

Attention now turns towards the US PCE inflation, ISM Manufacturing PMI index and revised Michigan Consumer Sentiment, as the final quarter of this year kicks in.

Gold Price: Technical outlook

From a short-term technical perspective, the bull flag breakout confirmed on gold’s hourly chart, suggests that the price remains on track to extend its recovery towards the measured target of $1797.

However, it could be a bumpy ride for gold bulls, as the investors remain cautious ahead of the critical US inflation data due later in the NA session on Friday.

Acceptance above Thursday’s high of $1764 could reinforce the renewed bullish interests.

The Relative Strength Index (RSI) holds firmer above the midline, allowing room for more upside.

Alternatively, immediate support awaits at the 200-Hourly Moving Average (HMA) at $1753, below which the daily lows could be retested.

Further south, the bullish 21-HMA at $1747 could offer strong support, below which the previous week’s low of $1738 will come into play.

Gold Price: Hourly chart

Gold Price: Additional levels

XAU/USD

Overview
Today last price 1754.64
Today Daily Change -2.24
Today Daily Change % -0.13
Today daily open 1756.88
 
Trends
Daily SMA20 1774.27
Daily SMA50 1785.2
Daily SMA100 1810.42
Daily SMA200 1802.9
 
Levels
Previous Daily High 1764.23
Previous Daily Low 1722.31
Previous Weekly High 1787.35
Previous Weekly Low 1737.83
Previous Monthly High 1834.02
Previous Monthly Low 1721.71
Daily Fibonacci 38.2% 1748.22
Daily Fibonacci 61.8% 1738.32
Daily Pivot Point S1 1731.38
Daily Pivot Point S2 1705.89
Daily Pivot Point S3 1689.46
Daily Pivot Point R1 1773.3
Daily Pivot Point R2 1789.73
Daily Pivot Point R3 1815.22

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD continues to decline toward 1.0250 during the American trading hours on Friday. After the data published by the UOM showed that the long-run inflation outlook rose to 3% in August from 2.9% in July, the dollar gathered strength against its rivals, weighing on the pair.

EUR/USD News

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD is trading deep in negative territory near 1.2100 during the American session on Friday. With the UoM's Consumer Sentiment Survey pointing to a modest increase in the long-run inflation outlook, the US Dollar Index extended its rally, reflecting a broad dollar strength.

GBP/USD News

Gold clings to modest gains above $1,790

Gold clings to modest gains above $1,790

Gold stays relatively resilient on Friday and trades modestly higher on the day above $1,790. Although the greenback continues to outperform its rivals on the latest US data, falling US Treasury bond yields help XAU/USD hold in positive territory.

Gold News

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shytoshi Kusama, the project leader of Shiba Inu announced the launch of Shiba Eternity for Vietnamese players. The game is available for testing and the team has asked users for their review. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures